Innovation and Commercialisation: Executive Summary for BEAUFIT Drinks

The report presents an executive summary of BEAUFIT Drinks, a startup focused on providing healthy and detox drinks. It covers the business idea, industry profile, and business model, including key partners, activities, resources, and revenue streams. The report highlights the product's points of differentiation, such as its unique blend of milk and soya with added health benefits, and discusses the challenges faced during innovation and commercialization, including financial resources, team building, and competition. It identifies the target market as health-conscious individuals aged 16-40 and outlines a marketing plan encompassing product, price, place, and promotion strategies. Additionally, the report includes a competitor analysis, sources of funding, and intellectual property rights considerations, concluding with a summary of the company's vision, mission, and objectives.

Innovation and
Commercialisation

Executive Summary
Innovation and commercialisation is a crucial part of every business firm in order remain
relevant, competitive, and profitable. The ideal behind innovation is to come up with unique idea
that matches the need of the target market. BEAUFIT drinks is the business firm which provides
healthy and detox drinks to the customer who likes to consumer beverages but are health
conscious at the same time. BEAUFIT comes with additional feature of detoxing the body up to
70% and helps in losing weight, improves metabolism, reduce inflammation, well-functioning of
liver and many more.

Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................1
Start-Up Business Idea of BEAUFIT Drinks...................................................................................1
Industry profile.................................................................................................................................1
Business model of BEAUFIT..........................................................................................................2
Points of differentiation...................................................................................................................3
Challenges to business idea.............................................................................................................3
Perspective customer.......................................................................................................................4
Marketing plan.................................................................................................................................5
Competitor analysis.........................................................................................................................6
Sources of Funding..........................................................................................................................7
Intellectual property rights...............................................................................................................7
Conclusion.......................................................................................................................................8
References:.......................................................................................................................................9
Books and Journals.................................................................................................................9

Introduction
Innovation is the concept based on bringing up new ideas and methods into the business,
implementation of which brings new good and services or improvement to the existing goods
and services offered by the company. Innovation adds new features to the product which add
more value to the product and customer or introduce new good and services, commercialisation
of which brings revolution in the market. Companies made innovation to keep up the pace with
the changing environment, changes in the desire and wants of the customer to have a competitive
edge over others (Son, Chung and Yoon, 2020). BEAUFIT drinks comes with a product which is
a both healthy and energetic at the same time. Being detox drinks, BEAUFIT comes with some
additional features of improving health and beauty. The below mentioned covers the overview of
the business including perspective customer, competitors, differentiation of the product, sources
of funding and anticipated challenges faced by BEAUFIT at the time of commercialisation.
Start-Up Business Idea of BEAUFIT Drinks
BEAUFIT drinks is a start-up company, founded four year back from now, headquartered at
Liverpool, North West England, United Kingdom. The company came into existence with the
objective of providing and health and energetic drinks to the younger and adult generation, age
group from 16-40 years. The idea came into existence when there was growing concern among
the people about the high consumption of carbohydrate drinks which leads to the obesity, high
cholesterol, diabetes and hypertension among the young generation. The goal of BEAUFIT is to
maintain the trend of beverage consumption but at the same time providing health nutrients (Apa
and et. al., 2020). The drinks is a blend of milk and soya with additional nutrients which work as
two-in one- energy drink while killing the toxins of the body. The drinks comes into three natural
flavours with additional benefits such as, Improves skin, boost energy, and improves digestion
and liver function. The name of the drinks or company is an acronym for Beauty (BEAU) and
Fitness (FIT), complementing the dual purpose of drinks. The drinks is recommended for fitness
freaks, working women, young generation with less physical exercise.
Industry profile
Food and drinks industry in UK market is one of the leading manufacturing sector
amongst others and forms ad part of complex supply chain in the market. With the extensive
research and development programmes in UK there is growing demand for new and innovative
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good and services which have made the rapid expansion and growth this manufacturing sector.
As per the report manufactured food and drinks had contributed £ 28 billion to the economy
which was approximately 2.3% that that of the figure of 2017, making it largest contributor to
the economy leaving behind all the other sectors including aerospace and automotive (Aldianto
and et. al., 2020). FDI industry of UK generated an overall turnover of approximately £ 105
billion which constitutes almost 20% of the overall revenue generated by the total manufacturing
sector in UK (Food and drink federation, 2021). The export market of food and drinks industry
in UK itself generated a revenue of more than £23 billion and went to the more than 220
countries across globe, out of which Ireland, USA and France were at top three. With the efforts
of the food and drinks industry member, carbon emission generated from manufacturing units
have declined up to more the 54% as compared two decades ago. The sector offer employment to
more than 430,000 people across every region and nation of UK.
Business model of BEAUFIT
Business Canvas model
Key partners
 Investment
partners
 Suppliers and,
 Regulatory
authorities and
agreements.
Key Activities
 The prime
activities of
the business is
to make
orders, charge
for the orders
made,
customer
service, and
shopping
experience.
Value Propo
sitions
 Affordable
price of the
product
 Customer
service.
 Best quality
and value.
 Convenienc
e
 Brand image
and prestige.
Customer
relationship
 Long term
relationship
based on
trust and
loyalty.
 Pre and post
customer
services.
 Personal
assistance
and
guidance.
Customer segment
 Working women
and housewives.
 College and
school
students.
 Fitness
freaks.
 Adults and
younger
generation
who are
health
conscious.
Key resources
 Manufacturing equipment
 Sales personnel
 Capital
Channels
 Direct
customer
services.
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 Store premises
 Brand Recognition
 Raw Material
 Retail store
such as
restaurants,
cafeteria etc.
 Store at
convenient
location.
Cost structure
 The start-up will require an initial investment of
EUR 100,000. 50% of the initial capital will be paid by
the investors and the rest will be borrowed.
Suppliers, employee wages, maintenance, tax, rent,
marketing, machinery and equipment.
Revenue stream
 Profit from Sales revenue.
 Advertisement and promotion.
Points of differentiation
BEAUFIT drinks have used differentiation strategy in its new product while
commercialising the product which will give the company a competitive edge over others.
Differentiation strategy will make the BEAUFIT drinks unique and distinct than that of other
rivalry firms offering same product. BEAUFIT as it name suggests come with a dual purpose of
beauty and health at the same time (Corona-Treviño, 2020). The uniqueness of the product is that
it is a blend of milk and soya making it a healthy, hygiene and diet drinks than that of any other
companies in UK, like Essence drink. Company completely focus on the taste while offering
healthy and dietary drinks, BEAUFIT drinks comes with three natural flavours of fruits and
vegetable, as there is a misconception that healthy and detox drinks does not give pleasant taste.
Additionally, BEAUFIT is effective in increasing oxygen level, helps in dehydration, brings
glow on skin and improves digestion and liver function.
Challenges to business idea
Innovation and forming a small companies is not an easy task as there are several
challenges associated with the formation and development of these new business ventures.
Below mentioned are the several challenges faced by BEAUFIT while making innovation and
commercialisation:
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 Financial resources and cash flow management: Financial resources is the basic hurdle
each and every entrepreneur face while forming a business venture (Asheim, Isaksen and
Trippl, 2020). Getting a sufficient financial resources for a new venture is a difficult task
as there as are no reliable sources, except the savings of an individual. Additionally there
is lack of cash flow for managing daily activities even if the new venture is formed
through saving of an entrepreneur.
 Team building: Another hurdle in the way of BEAUFIT is the acquiring and getting right
talent workforce with the desired skills and knowledge. There are several aspects which
has to be keep in mind while deciding on recruiting a people such as cost of the business,
culture and working environment, expertise required and what roles each one has to
perform.
 Decision making: Due to the inexperience in the business, entrepreneurs may face a
difficulty in making relevant decisions in the business due to the doubts, risk and fear of
failure (Chiffoleau and Dourian, 2020). While forming a venture there are several aspects
that require strong decision making power such as defining mission, vision, plans and
policies, weighing pros and cons etc.
 Competitors: Entering into a new market through exploiting new opportunities can help
the BEAUFIT in success and growth however, entrepreneur will be welcomed by the
already existing competitors with strong positioning in the market can be challenging task
while forming a new venture.
 Prospective customer: Another biggest challenges forming a new business venture is
identifying the right target market for the product and services produced by the company.
Finding a right customer, analysing their needs and wants, budget and value they are
looking for can help BEWUFIT in identifying the right customer for right products and
services.
Perspective customer
As per the analysis of the recent facts and figures it has been revealed that almost half of the
members in food and beverages sector is looking for the new opportunities for innovation due to
the rising demand for the healthy products and services (Afshari-Mofrad, Ghazinoory and Nasri,
2020). Evidently, Food and beverage industries have been selling 90.3 million kilograms of
sugar, 1.2 trillion fewer calories, and 4.9 million fewer kilograms of salt as compares to the
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consumption level of 2015 and this drastic changes in due to rising concern among the people of
UK with regards to health and hygiene. This have given rise to the emergence of business
ventures like BEAUFIT which have developed a healthy, detox and energy drinks for the people
of UK. Whiles designing a product company have selected a people from an age group of 16-40
who have less time to look after their health (ul ain Aslam, Ali and Choudhary, 2020). The idea
behind was to add a healthy drinks into the beverage list of young and adults to mitigate the risk
of several disease caused by carbohydrate drinks such as obesity, diabetes, poor digestive
system, acidity etc.
Marketing plan
Good and effective marketing plan of BEAUFIT will help in generating sales and
reaching to its target audience. Marketing plan outlines the marketing strategy adopted by the
company which clearly outlines, mission, vision and objectives of a company and how the
company is going to meet its goals and objectives over a period of time. The basic element of a
marketing plan has 4P, product, price, place and promotion which is also regarded as marketing
mix.
Vision: Vision of BEAUFIT drinks is to reach to the large group of customer base in UK and to
make their product as the most preferable healthy drink among others with the unique feature of
healthy, beauty and wellness (Knudsen, Frederiksen and Goduscheit, 2021).
Mission: Mission of the company is to keep the quality of a product up to mark with no rise in
cost and provide customer with the healthy and energetic drink which meet their health and
hygiene needs.
Objective: Company strongly believes in building strong relationships with the customer,
supplier and employees, ensure high rate of return and producing goods that matches the needs
of the customer with minimal impact over people and planet.
 Product: First and essential element of marketing mix is the product that company is
going to offer to the target market. BEAUFIT, through extensive research and analysing
of market trend, have come up with a healthy and detox drink, which shows a shift in the
taste and preference of customer towards more healthy and hygiene products. The
product is a blend of milk and soya with no extra chemical which is effective in removing
toxins from the body and meanwhile improving the digestion and liver function. The
drinks also brings glow to the skin that’s why it is called BEAUFIT drink.
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 Price: Another element of marketing mix is the price, price of a product that customer is
willing to pay against the value he/she gets (Jackson, 2020). BEAUFIT have kept the
price of their drinks low as compared to other with the aim of reaching to the more
people as much as possible. Rather than focusing on profit making company have
focused on the differentiation strategy which add more feature to the product and make it
unique and different.
 Place: Place is the location from where BEAUFIT will offer its healthy, detox and
energetic drink to the customer. Company have chosen the supermarkets, restaurants,
cafeteria, and places where young people have easy accessibility.
 Promotion: This element takes into account several promotional and branding methods
used by the company. BEAUFIT offers its drinks in tetra pack making it bio-degradable
and making it more perishable. Attractive logo and design of the packaging material
make the product itself different from the other rivalry companies.
Competitor analysis
Innocent drinks: One of the rivalry of BEAUFIT in United Kingdom is Innocent drinks owned
and managed by its parental company Coca-Cola. The company was founded in the year 1999,
when they got the positive response from the people when they first offered smoothies at music
festival (Isa and et. al., 2020 (Hardey, 2020). Company since then have been producing coconut
drinks, juices and beverages for kids which is more natural, delicious and healthy that help
people live fit and well while die old. Innocent drinks have become the leading company with
total revenue of approximately £200 million a year.
Nutrivend: Nutrivend is another competitor for BEAUFIT which is already in a segment of
energetic and nutrition drinks. Nutrivend offers its drinks through vending machines placed at
gyms, universities and other leisure centre. The company came into existence in the year 2012 by
Scott Morgan. Company presently has the workforce of approximately 22, generating total
revenue of £ 4million per year.
Sources of Funding
 Retained Earnings: One of the best source of funding a business is revenue generated
from the sales of existing products and services. After obtaining a desirable profit it is the
decision of a company where to invest the amount of profit (Son, Chung and Yoon,
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2020). BEAUFIT can choose for this method as this the primitive source of funding for
any company, old or new.
 Personal investment: Putting one’s own fund into a business is the wise solution while
starting a business as it reduced the liability of an individual and risk of losing someone
else’s money. BEAUFIT can itself be its own investor through investing saving amount
or through collateral the personal assets.
 Angel investors: Most common and contemporary method of acquiring funds is from
anger investors who are wealthy individual or retired professional who invest into the
valuable business of the others. They not only share the money but also knowledge,
experience and expertise with the entrepreneurs to make the business successful.
 Baking institutions: BEAUFIT can also opt for a funding from banking institutions, as
the government of UK have launched several scheme for promoting entrepreneurs and
small businesses, such as low interest rates, rebates in loan amount or extended period for
repayment of loan (Apa and et. al., 2020).
Intellectual property rights
Intellectual property rights grants the innovator or inventor the rights over the creation of
artistic and exceptional work. These are the rights granted to the creator for a specified period of
time to have a control and authorization over the use and of their artistic work. These rights
empower the creators to prevent their work from theft and duplication. Some basic tools can help
BEAUFIT to protect their innovation from being stolen and hold the title of their creation:
 Trade secrets: These information are private and secret as they help the company in
gaining competitive edge over other and help them in continuous success and growth.
Stealing of such information can be harmful for BEAUFIT, therefore it is imperative for
the company to obtain license of trade secrets (Aldianto and et. al., 2020).
 Patents: Patents grants the right to the creator to protect their inventions for a specified
period of time and prevent others to make, sell or use the product or business idea. New
machinery or equipment, new products, process or even new concepts at business can be
patented.
 Trademarks: While patents are used to protect inventions, copyrights are used to protect
idea, creation or artistic work, trademarks are used to make the design, logo and name of
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the company different from the rivalries. These words, taglines, logos of BEAUFIT help
the customer to easily recognise and differentiate than that of a competitors.
Conclusion
From the above conducted report it is concluded that innovation and commercialisation
of the products and services help the company to perform better in a competitive environment.
By analysing the external market environment companies identifies the opportunities that can
help them to have a competitive edge over others and in their ongoing success and growth.
Innovation brings the revolution in the market as they are unique and distinct in its approach and
are exactly as per the needs and desires of the target group. Therefore, it is essential for the
company to make necessary changes in their offering so as to be relevant and competitive.
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References:
Books and Journals
Afshari-Mofrad, M., Ghazinoory, S. and Nasri, S., 2020. Measuring the efficiency, effectiveness
and changeability of institutions for improving national innovation system. Asian
Journal of Technology Innovation, pp.1-25.
Aldianto, L., and et. al., 2020. Integrated clustering of creative industries to foster innovation:
Bandung's creative industries. International Journal of Entrepreneurial
Venturing. 12(4). pp.420-438.
Apa, R., and et. al., 2020. University-SME collaboration and innovation performance: the role of
informal relationships and absorptive capacity. The Journal of Technology Transfer,
pp.1-28.
Asheim, B.T., Isaksen, A. and Trippl, M., 2020. The role of the Regional Innovation System
approach in contemporary regional policy: is it still relevant in a globalised world?.
In Regions and Innovation Policies in Europe. Edward Elgar Publishing.
Chiffoleau, Y. and Dourian, T., 2020. Sustainable Food Supply Chains: Is Shortening the
Answer? A Literature Review for a Research and Innovation
Agenda. Sustainability. 12(23). p.9831.
Corona-Treviño, L., 2020. Les défis pour l’innovation dans les services dans les pays en
développement-Les cas du Mexique et de l’Amérique latine. Revue Européenne
d’Économie et Management des Services. 2020(10). pp.73-108.
Hardey, M., 2020. Social innovation and the university: the impact of intervention for the micro
creative economy in North East England. Social enterprise journal.. 16(2). pp.203-
220.
Isa, F.M., and et. al., 2020. Comparison of students' perception about curriculum design versus
employability in Malaysia, Indonesia and Thailand. International Journal of
Management in Education. 14(4). pp.331-351.
Jackson, D., 2020. Gauging the development of innovative capabilities in Accounting and
Finance students: can they drive the national innovation agenda?. Accounting &
Finance. 60(3). pp.2689-2715.
Knudsen, M.P., Frederiksen, M.H. and Goduscheit, R.C., 2021. New forms of engagement in
third mission activities: A multi-level university-centric approach. Innovation. 23(2).
pp.209-240.
Son, H., Chung, Y. and Yoon, S., 2020. How can university technology holding companies
bridge the Valley of Death? Evidence from Korea. Technovation, p.102158.
Ubreziova, I., and et. al., 2020. Innovation Ecosystems for the Moldovan Small and Medium-
Sized Enterprises.
ul ain Aslam, Q., Ali, R. and Choudhary, A.I., 2020. The Art of Making Workplace Innovative:
Conceptual Integration of Leader-Member Exchange, Workplace Innovation and
Employee Creativity. Journal of Management and Research. 7(2). pp.146-165.
Online source
[Online] Food and Drinks Federation, 2021, Available through: <
https://www.fdf.org.uk/fdf/business-insights-and-economics/facts-and-stats/#:~:text=Our
%20industry%20has%20a%20turnover,%C2%A3120bn%20to%20the%20economy. >./
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